SAP S/4HANA is SAP’s next-generation ERP suite designed to run on the advanced SAP HANA in-memory platform. It integrates all critical business processes into a single system, offering real-time data processing and simplified data models. At the heart of SAP S/4HANA lies its modular architecture, which organizes the software into distinct functional components known as core modules.
Understanding these core modules is essential for anyone working with SAP S/4HANA, as they cover the broad range of business functions that an enterprise requires to operate efficiently.
Core modules in SAP S/4HANA are individual functional areas of the ERP system that represent different business processes. Each module focuses on specific business activities and can be implemented independently or together depending on organizational needs. These modules work seamlessly on the S/4HANA platform, leveraging the power of real-time analytics and simplified data models.
Below are some of the most important SAP S/4HANA core modules:
This module manages all financial transactions and accounting processes, including general ledger, accounts payable and receivable, asset accounting, and controlling.
The Sales and Distribution module handles all sales processes from order management to billing and shipping.
This module manages procurement and inventory management activities.
PP focuses on planning and controlling manufacturing processes.
QM integrates quality control and assurance throughout the supply chain and production process.
This module supports maintenance of equipment and machinery.
The Project System module handles the planning, execution, and monitoring of projects.
Manages employee-related processes such as recruitment, payroll, time management, and performance evaluation.
One of SAP S/4HANA’s strengths is the seamless integration between these modules. For example, a sales order created in the Sales and Distribution module automatically impacts inventory levels in Materials Management and financial postings in Finance.
This tight integration reduces data silos, improves process efficiency, and supports real-time decision-making.
SAP S/4HANA’s core modules provide a comprehensive toolkit to manage every aspect of an enterprise’s operations — from finance and procurement to production and human resources. Familiarity with these modules is fundamental to leveraging the full potential of SAP S/4HANA.
Whether you’re an SAP consultant, developer, or business user, a solid grasp of these core modules will help you drive efficiency, improve processes, and enable data-driven decision-making in your organization.